Don’t be fooled into thinking you should buy a stock just because it’s a dividend stock. There are plenty of dividend stocks out there, but only a few are worth owning. Some dividend stock may pay 15%, but if it isn’t sustainable or it fluctuates, then you’re buying into more risk than you probably should. If you’re going to hold dividend stocks in a long term diversified portfolio, then you’ll want to hold dividend stocks that have not only paid dividends, but paid them for a long time and have been consistently increasing them.
These four dividend stocks are solid stocks with a long history of increasing their dividends. That makes them prime candidates for your portfolio: Most people associate Diebold (DBD) with electronic voting machines but next time you’re at a Bank of America (BAC) ATM, look for the manufacturer’s name. Emerson Electric (EMR) is exactly the kind of boring company I like. It engages in many disciplines, including process management that handles measurements, controls and monitoring for both power and food treatment facilities. 3M (MMM) has always been one of my favorite dividend stocks. Besides selling a host of products you likely have in your own home, 3M operates in multiple other segments. Altria Group (MO) sells tobacco products.